Oman Oil said to seek strategic advice amid Aramco IPO plans

LONDON (Bloomberg) -- Oman Oil Co., the sultanate’s state-owned energy producer, is seeking advice from banks on strategic options for its business, according to people familiar with the matter, following plans by larger peer Saudi Arabian Oil Co. to sell shares to the public.

The oil producer has asked international investment banks to pitch for roles to advise on plans to restructure its portfolio, the people said, asking not to be identified as the information is private. Oman Oil may sell assets or list some of its portfolio businesses on the stock market, the people said.

A representative for Oman Oil didn’t have an immediate comment.

Countries in the Gulf Cooperation Council, a group of six oil-producing Arab monarchies, are restructuring national oil companies -- selling shares, merging units and cutting costs -- amid a drop in crude prices. Aramco is planning an initial public offering, which the government claims may raise about $100 billion. Qatar Petroleum is merging its two liquefied natural gas divisions, Qatargas and RasGas, after dismissing thousands of workers in 2015.

Oman is expanding its energy industry and developing new sources of revenue amid a drop in oil prices that has hurt government coffers. It’s building a port and metals factory in the Arabian Sea town of Duqm.

Oman Oil holds stakes in Hungary’s Mol Nyrt., Oman Gas Co., Oiltanking Odfjell Terminals & Co. and the Musandam power plant, among a number of other businesses. The company agreed to acquire Oxea from from Advent International Corp. in 2013 to expand beyond refining into chemicals and ingredients for manufacturing and consumer goods.